The carnage continues in speculative growth stocks, as numerous names fell hard once again.
Today, Wednesday May 11, 2022, the NASDAQ composite shed 3.2% to close at 11364. The S&P 500 fell just 1.6% to land at 3935.
Speculative Stock Selloff
Former leading aggressive growth growth stocks drew the brunt of the pain, including:
- Zscaler (ZS) -9% to close at $136
- Crowdstrike (CRWD) -10% to close at $137
- Mercadolibre (MELI) -12% to end the day at $680
- Dutch Bros (BROS) -16% to close at $34
- Sea (SE) -11% to $57
- Sweetgreen (SG) -14% to close at $18
- Unity (U) -37% to $30
Travel Related Names Are Holding Up Well
Outside of oil stocks, there’s not much going up in this Bear Market. One segment that’s holding-its-own is travel related stocks, including Booking (BKNG), MasterCard (MA) and Visa (V).
Here’s a ten-year chart of Visa we made over the weekend.
V has been a great stock for conservative investors with an excellent safety rating, an Estimated Long-Term Growth Rate of 18%, a dividend yield of less than 1%, and a stock buyback program. This stock is appreciated amongst institutional investors for its consistent sales/profit/stock growth. It’s business model doesn’t rely on a big sales or R&D budget, so management has loads of cash coming in to buy back stock. Last qtr, management repurchased $4 billion in stock. In Fiscal 2021, management repurchased around $9 billion in stock.